Latest News on UCO Bank
India Plans to Consolidate State-Run Banks in Next Phase of Mergers, Aiming to Create Lenders of Global Proportions
The Government of India is preparing for the next round of consolidation of public sector banks (PSU banks) with the goal of creating large, globally competitive lenders. The aim is to support India’s long-term economic ambitions and achieve the vision of a developed India by 2047. Finance Minister Nirmala Sitharaman has emphasized the need for several large, world-class banks to raise capital, compete globally, and finance large infrastructure and development projects.
Currently, India has 12 public sector banks, with the State Bank of India (SBI) being the largest, ranking 43rd among the world’s top 50 banks. PSU banks account for nearly 60% of the country’s total banking business, making them strategically important in India’s financial system. The government is considering merging small and mid-sized PSU banks with larger lenders, with banks such as Indian Overseas Bank, UCO Bank, and Bank of Maharashtra potentially being merged with larger banks like SBI, Punjab National Bank, or Bank of Baroda.
This is not the first round of consolidation in the Indian banking sector. Since 2017, the number of PSU banks has decreased from 27 to 12 through a series of mergers. Key mergers include the merger of United Bank of India and Oriental Bank of Commerce with Punjab National Bank, and the merger of Dena Bank and Vijaya Bank with Bank of Baroda. SBI has also absorbed five associate banks and Bharatiya Mahila Bank, expanding its balance sheet and branch network.
In addition to consolidation, the government is also progressing with the strategic disinvestment of IDBI Bank. The Department of Investment and Public Asset Management (DIPAM) Secretary has indicated that the transaction is expected to be completed by March 2026. The government had sold a 51% stake in IDBI Bank to LIC in 2019, and the remaining stake is now slated for sale to private investors. The goal of these efforts is to create a stronger and more competitive banking sector that can support India’s economic growth and development.
Budget Announcement on PSU Bank Consolidation: Expectations for IOB, UCO, BOI, BOM, and Central Bank Merger Plans
The Indian government is expected to make significant announcements regarding the merger of Public Sector Banks (PSBs) in the upcoming budget. The merger of banks such as Indian Overseas Bank (IOB), UCO Bank, Bank of India (BOI), Bank of Maharashtra (BOM), and Central Bank of India is anticipated to be a key aspect of the budget.
The government’s plan to merge PSBs aims to create larger and more efficient banks, which can compete with private sector banks. The merger is expected to lead to improved financial health, increased lending capabilities, and enhanced customer services. Additionally, the merger will help in reducing the number of PSBs, making them more manageable and allowing for better allocation of resources.
The merger of IOB, UCO, BOI, BOM, and Central Bank is seen as a significant step towards consolidation in the banking sector. The government has already merged several PSBs in the past, resulting in the creation of larger banks such as State Bank of India (SBI), Punjab National Bank (PNB), and Canara Bank. The upcoming merger is expected to further strengthen the banking sector and improve its overall performance.
The budget announcement is expected to provide details on the merger, including the timeline, structure, and benefits for customers and employees. The government may also announce measures to support the merged banks, such as capital infusion, rationalization of branches, and implementation of new technologies. The merger is likely to have a significant impact on the banking sector, and the budget announcement will be closely watched by stakeholders, including customers, employees, and investors.
In recent years, the government has taken several steps to strengthen the banking sector, including the implementation of the Insolvency and Bankruptcy Code (IBC) and the establishment of the National Company Law Tribunal (NCLT). The merger of PSBs is seen as a key aspect of this effort, aimed at creating a more robust and efficient banking system. The upcoming budget announcement is expected to provide further details on the government’s plans for the banking sector and the merger of PSBs.
Overall, the merger of PSBs is a significant development in the Indian banking sector, and the budget announcement is expected to provide important details on the government’s plans. The merger is likely to have a positive impact on the banking sector, leading to improved financial health, increased lending capabilities, and enhanced customer services. The government’s efforts to strengthen the banking sector are expected to continue, with the merger of PSBs being a key aspect of this effort.
Major Development in PSU Bank Consolidation: IOB, UCO, BOI, BOM, and Central Bank Under Consideration for Merger – What’s the Timeline for the Next Phase of PSB Consolidation?
The Indian government is planning to initiate the next phase of public sector bank (PSB) mergers, with several banks on the radar, including Indian Overseas Bank (IOB), UCO Bank, Bank of India (BOI), Bank of Maharashtra (BOM), and Central Bank of India. The merger of these banks is expected to be a significant step towards consolidation in the Indian banking sector.
The government had earlier merged 10 PSBs into four large banks, resulting in the creation of mega banks such as State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), and Canara Bank. The merger aimed to create stronger and more competitive banks, with improved financial health and increased lending capacity.
The next phase of the merger is expected to be more challenging, as it involves banks with weaker financials. The government is likely to consider factors such as the banks’ financial performance, asset quality, and regional presence before deciding on the mergers. The merger process is expected to be completed in a phased manner, with the first phase likely to involve the merger of smaller banks.
The banks on the radar, including IOB, UCO Bank, BOI, BOM, and Central Bank of India, have been struggling with high non-performing assets (NPAs) and weak financial performance. The merger is expected to help these banks improve their financial health and increase their lending capacity.
The government has not yet announced a specific timeline for the next phase of the merger. However, it is expected to happen soon, as the government is keen to complete the consolidation process in the banking sector. The merger is also expected to lead to job losses, as the merged entity will likely have a reduced workforce.
The PSB merger is part of the government’s broader plan to reform the banking sector and improve its efficiency. The government has also announced several other measures, including the establishment of a bad bank to take over stressed assets and the introduction of a new bank licensing policy. The measures aim to strengthen the banking sector and improve its ability to support economic growth.
In conclusion, the next phase of the PSB merger is expected to involve the merger of several smaller banks, including IOB, UCO Bank, BOI, BOM, and Central Bank of India. The merger is expected to be a significant step towards consolidation in the Indian banking sector and is likely to lead to the creation of stronger and more competitive banks. However, the process is expected to be challenging, and the government will need to carefully consider the financial performance and asset quality of the banks involved.
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Should SBI, PNB, and BOB Lead the Next PSU Bank Merger, and What’s the Future for BOI, IOB, BOM, and UCO?
The Indian government’s plan to merge public sector banks (PSBs) has been a topic of discussion in recent years. The goal is to create larger, more efficient banks that can compete with private sector banks. The recent merger of 10 PSBs into four larger banks has been seen as a success, with the merged entities showing improved financial performance. Now, the question is whether the big banks, such as State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BOB), should take part in the next merger.
The government has indicated that the next phase of mergers will involve smaller banks, with Bank of India (BOI), Indian Overseas Bank (IOB), Bank of Maharashtra (BOM), and UCO Bank being considered. These banks have been struggling with high non-performing assets (NPAs) and low capital adequacy ratios. Merging them with larger banks like SBI, PNB, and BOB could help them gain scale and improve their financial health.
However, there are arguments against involving the big banks in the next merger. One concern is that it could lead to cultural and operational challenges, as the merged entities would have to integrate different systems and processes. Additionally, the big banks may not want to take on the burden of the smaller banks’ NPAs and other legacy issues.
On the other hand, involving the big banks in the merger could bring several benefits. It could help them expand their reach and customer base, and gain access to new markets and products. It could also help the government achieve its goal of creating fewer, larger banks that can compete with private sector banks.
The potential benefits of the merger for the smaller banks are clear. BOI, IOB, BOM, and UCO Bank would gain access to more resources, expertise, and technology, which could help them improve their financial performance and competitiveness. The merger could also help them reduce their NPAs and improve their capital adequacy ratios.
In conclusion, while there are valid arguments for and against involving the big banks in the next merger, the potential benefits of the merger for the smaller banks are significant. The government should carefully consider the pros and cons and make a decision that is in the best interest of the banking sector and the economy as a whole. If the big banks are involved in the merger, it could lead to the creation of even larger, more efficient banks that can compete with private sector banks and support the country’s economic growth.
Government to Accelerate PSBs’ Fundraising Efforts with Roadshows Slated for Next Week, Boosting Economy
The Indian government is gearing up to accelerate its fund-raising plans for public sector banks (PSBs) through a series of investor roadshows, starting next week. The Department of Investment and Public Asset Management (DIPAM) will lead the effort, with its Secretary personally participating in the roadshows for Bank of Maharashtra. The goal is to expedite minority stake sales in select lenders, including Bank of Maharashtra, Indian Overseas Bank, Central Bank of India, UCO Bank, and Punjab & Sind Bank.
The roadshows are part of a broader strategy to raise funds for these five PSBs, which are in need of capital to meet regulatory requirements and support their growth plans. The government aims to sell minority stakes in these banks to private investors, which will not only help raise capital but also bring in fresh management expertise and improve governance.
The DIPAM Secretary’s personal involvement in the roadshows highlights the government’s commitment to this initiative. The Secretary will engage with potential investors, showcasing the strengths and growth potential of these PSBs, and addressing any concerns they may have. The roadshows will provide a platform for investors to interact with the bank management and gain a deeper understanding of their business strategies and prospects.
The government’s fund-raising plans for PSBs are ambitious, with a focus on accelerating the growth of these lenders and improving their financial health. The sale of minority stakes is expected to attract significant investor interest, given the potential for long-term returns and the opportunity to participate in the growth of India’s banking sector.
Overall, the launch of the roadshows next week marks an important milestone in the government’s efforts to revitalize the PSBs and put them on a path of sustainable growth. With the DIPAM Secretary’s personal involvement and the participation of potential investors, the stage is set for a successful fund-raising exercise that will benefit both the banks and the investors. The outcome of these roadshows will be closely watched, as it will have significant implications for the Indian banking sector and the country’s economic growth prospects.
Bank of India, Central Bank, and UCO Bank report significant Q2 profit increases, defying margin compression challenges
Three public sector lenders in India, Uco Bank, Central Bank of India, and Bank of India, have reported significant gains in their net profit after tax for the September quarter. Uco Bank’s net profit increased by 2.8% to ₹620 crore, while Bank of India’s net profit rose by 7.6% to ₹2,555 crore, and Central Bank of India’s net profit surged by 32.8% to ₹1,213 crore. The increase in profit can be attributed to higher interest income and lower provisions.
However, all three banks experienced a drop in net interest margins (NIMs), which is the difference between the interest income generated from assets and the interest paid out on liabilities. Bank of India’s NIMs fell to 2.41% from 2.81%, while Central Bank of India’s NIMs declined to 2.89% from 3.41%, and Uco Bank’s NIMs stood at 2.90% from 3.10%. Despite this, bank officials expect the pressure on NIMs to reduce in the third quarter.
The banks’ net interest income (NII) also saw varying trends. Central Bank of India’s NII grew by 3.7% to ₹3,283 crore, while Uco Bank’s NII increased by 10% to ₹2,533 crore. In contrast, Bank of India’s NII reduced by 1% to ₹5,912 crore. Provisions, which are funds set aside for potential loan losses, also declined for Bank of India and Central Bank of India, but increased for Uco Bank.
In terms of loan and deposit growth, all three banks saw loan growth outpacing deposit growth. Uco Bank’s loans grew by 10.8% to ₹3.05 lakh crore, while deposits grew by 16.5% to ₹2.3 lakh crore. Bank of India’s loans grew by 14% to ₹7.1 lakh crore, while deposits grew by 10% to ₹8.5 lakh crore. Central Bank of India’s loans grew by 16.03% to ₹2.9 lakh crore, while deposits grew by 13.4% to ₹4.5 lakh crore. Overall, the banks’ performance suggests a positive trend, with higher interest income and lower provisions contributing to increased profitability.
DFS Secretary says government is on track to finalize IDBI Bank stake sale by end of fiscal year 2026.
The government of India has announced plans to undertake an Offer for Sale (OFS) in five public sector banks. The banks in question are Bank of Maharashtra, Indian Overseas Bank, UCO Bank, Central Bank of India, and Punjab and Sind Bank. The primary objective of this move is to reduce the government’s stake in these banks to below 75%. This development is in line with the government’s previous disclosures regarding its plans to dilute its ownership in these financial institutions.
The OFS is expected to have a significant impact on the banking sector, as it will lead to increased private participation in these banks. By reducing its stake, the government aims to infuse fresh capital, improve efficiency, and enhance the overall competitiveness of these banks. The move is also seen as a step towards consolidating the banking sector and making it more resilient to external shocks.
Meanwhile, Axis Bank’s managing director and chief executive, Amitabh Chaudhry, expressed his bank’s enthusiasm for lending to entities seeking acquisition finance. He noted that foreign lenders currently dominate this segment, and Axis Bank is keen to capitalize on this opportunity. Chaudhry also highlighted the relatively new field of private credit, which offers immense potential for growth.
The private sector lender’s interest in acquisition finance is a significant development, as it indicates a shift in the bank’s strategy towards catering to the growing needs of corporate clients. With the government’s plans to divest its stake in public sector banks, private lenders like Axis Bank are likely to play a more prominent role in the banking sector. As the Indian economy continues to grow, the demand for acquisition finance is expected to increase, and Axis Bank is well-positioned to tap into this opportunity.
Overall, the government’s plan to undertake an OFS in five public sector banks and Axis Bank’s interest in acquisition finance are positive developments for the Indian banking sector. These moves are expected to lead to increased private participation, improved efficiency, and enhanced competitiveness, ultimately contributing to the growth and stability of the economy.
HDFC Bank Sees 9% Surge in Loans, While Kotak, IDBI, and UCO Banks Deliver Positive Q2 Results in Latest Business Updates
The Indian banking sector has reported strong loan and deposit growth in the July-September 2025 quarter, with both private and public sector lenders showing healthy numbers. HDFC Bank, Kotak Mahindra Bank, IDBI Bank, and UCO Bank all posted double-digit increases in their loan books, reflecting continued momentum in credit demand.
HDFC Bank reported a 9% year-on-year growth in loans, which stood at Rs 27.9 lakh crore as of September 30, 2025. The bank’s total advances under management rose to Rs 28.6 lakh crore, up 8.9% from Rs 26.3 lakh crore a year earlier. Total deposits increased 15.1% to Rs 27.1 lakh crore, compared with Rs 23.5 lakh crore in the year-ago period.
Kotak Mahindra Bank posted a 15.8% rise in advances to Rs 4.62 lakh crore during Q2 FY26, compared with Rs 3.99 lakh crore in the same quarter of the previous fiscal. The bank’s total deposits grew 14.6% to Rs 5.28 lakh crore, up from Rs 4.61 lakh crore a year earlier.
IDBI Bank reported a 15% year-on-year growth in its credit book, with net advances rising to Rs 2.3 lakh crore as of September 30, 2025, compared with Rs 2 lakh crore last year. Total deposits stood at Rs 3.03 lakh crore, up 9% from Rs 2.77 lakh crore a year ago.
UCO Bank reported a 13.29% year-on-year rise in total business to ₹5.37 lakh crore in the September 2025 quarter. Total advances grew 16.67% to Rs 2.31 lakh crore, from Rs 1.98 lakh crore in the same period last year. Deposits increased 10.87% year-on-year to Rs 3.06 lakh crore, compared with Rs 2.76 lakh crore last year.
The latest updates from major lenders indicate that credit demand across retail, corporate, and MSME segments remains strong in FY26 so far. Their Q2 results, including revenue, net profit, and NPAs, will be released this month. The strong growth in both loans and deposits underscores continued traction across various segments, suggesting a positive outlook for the banking sector.
The growth in loans and deposits is a positive sign for the economy, as it indicates that businesses and individuals are taking on more credit, which can lead to increased economic activity. The banks’ ability to grow their loan books and deposits also suggests that they are able to effectively manage their risk and provide credit to those who need it.
Overall, the Q2 business updates from HDFC Bank, Kotak Mahindra Bank, IDBI Bank, and UCO Bank suggest that the banking sector is on a strong footing, with healthy growth in loans and deposits. This is a positive sign for the economy and suggests that the sector will continue to play a crucial role in supporting economic growth.
The performance of these banks is likely to have a positive impact on the overall economy, as they are major players in the financial sector. The growth in loans and deposits is expected to continue, driven by strong credit demand across various segments. The banks’ focus on managing risk and providing credit to those who need it is also expected to continue, which will help to support economic growth.
In conclusion, the Q2 business updates from major lenders suggest that the banking sector is on a strong footing, with healthy growth in loans and deposits. This is a positive sign for the economy and suggests that the sector will continue to play a crucial role in supporting economic growth. The strong growth in loans and deposits is expected to continue, driven by strong credit demand across various segments.
UCO Bank Official Under Fire for Allegedly Telling Employee ‘Everyone’s Mother Dies, Don’t Be Dramatic’ in Viral Email, Sparking Outrage Over Toxic Behavior
A viral internal email has exposed the allegedly toxic and dictatorial workplace culture fostered by RS Ajith, the Chennai Zonal Head of UCO Bank. The email details multiple instances of insensitivity and abusive behavior, including denying leave to employees during critical family emergencies. One employee was allegedly told “Everyone’s mother dies, don’t be dramatic” when they requested leave after their mother’s death. Another was pressured to work despite having a hospitalized one-year-old daughter, with the threat of leave without pay if they didn’t comply.
The email also recounts an incident where a branch officer’s wife suffered a life-threatening condition, and Ajith allegedly reacted with derogatory comments and refused leave. These instances have sparked widespread condemnation on social media, with many calling for regulatory scrutiny from the Reserve Bank of India and the Ministry of Finance. The incident has been branded as “institutional cruelty” and “emotional harassment” camouflaged as discipline.
Despite the outrage, UCO Bank and its Chennai zonal office have not issued a formal response. The incident has reignited conversations about employee welfare, managerial accountability, and the need to reform workplace cultures in public sector banks and beyond. The Logical Indian has asserted that leadership demands not only discipline but also empathy and respect for personal dignity, especially in moments of grief or crisis.
The controversy has prompted calls for banks and institutions to reevaluate their human resource policies and prioritize kindness alongside efficiency. The alleged behavior of RS Ajith has been widely criticized, with many questioning how a zonal head can treat employees with such disrespect and insensitivity. The incident has sparked a wider discussion about the importance of creating a compassionate work environment where employees feel valued beyond their productivity.
As the incident continues to unfold, it remains to be seen how UCO Bank and regulatory authorities will respond to the allegations. The public outcry and demands for action have highlighted the need for greater accountability and transparency in workplace cultures, particularly in public sector institutions. The incident serves as a reminder that leadership must balance discipline with empathy and respect for human dignity, and that institutions must prioritize kindness and compassion alongside efficiency and productivity.
UCO Bank’s Q4 net profit surges 24% year-over-year, reaching Rs 665.7 crore.
UCO Bank has reported a significant improvement in its financial performance for the fourth quarter of the fiscal year 2022-23. The bank’s net profit has surged by 24% year-over-year (YoY) to Rs 665.7 crore, marking a substantial increase from the same period last year. This impressive growth can be attributed to the bank’s efforts to improve its asset quality, reduce non-performing assets (NPAs), and enhance its operational efficiency.
The bank’s total income for the quarter stood at Rs 6,442.6 crore, up 12.6% YoY from Rs 5,722.3 crore in the corresponding quarter last year. The net interest income (NII) also witnessed a growth of 23.4% YoY to Rs 2,444.9 crore, driven by an expansion in the net interest margin (NIM) to 2.42% from 2.13% in the year-ago quarter.
UCO Bank’s provisions and contingencies for the quarter declined by 24.5% YoY to Rs 845.1 crore, primarily due to a reduction in provisioning requirements for NPAs. The bank’s NPA ratio has also improved significantly, with the gross NPA ratio declining to 3.65% from 4.89% in the same quarter last year. The net NPA ratio also came down to 1.32% from 2.05% YoY.
The bank’s capital adequacy ratio (CAR) stood at 13.74% as of March 31, 2023, above the regulatory requirement of 10.875%. The return on assets (ROA) improved to 0.66% from 0.54% in the year-ago quarter, while the return on equity (ROE) increased to 11.64% from 9.13% YoY.
In terms of business growth, UCO Bank reported a 10.1% YoY increase in advances to Rs 1,39,936 crore, while deposits grew by 7.2% YoY to Rs 2,33,357 crore. The bank’s CASA (current account, savings account) deposits rose by 12.2% YoY to Rs 83,120 crore, with the CASA ratio improving to 35.71% from 33.42% YoY.
Overall, UCO Bank’s Q4 performance is a reflection of the bank’s efforts to transform its business and improve its financial health. The bank’s focus on reducing NPAs, improving asset quality, and enhancing operational efficiency has yielded positive results, positioning it for sustainable growth in the long term. With a strong capital base, improving profitability, and a growing business, UCO Bank is well-placed to capitalize on emerging opportunities and drive growth in the banking sector.
IBPS PO Prelims Result 2025 Expected to Release Shortly on ibps.in; Get Vacancy Details and Latest Updates Here
The Institute of Banking and Personnel Selection (IBPS) is anticipated to announce the results of the Probationary Officer (PO) preliminary exam for 2025 soon. Candidates who took the exam can check their results on the official IBPS website, ibps.in, by logging in with their registration number and date of birth. The IBPS PO recruitment for 2025 aims to fill 5,208 vacancies for the roles of Probationary Officer/Management Trainee across several major Indian banks.
To check their results, candidates can follow these steps: visit the official IBPS website, click on the link for the IBPS PO Prelims Result 2025, enter their login details, and submit. Their result will then be displayed on the screen, and they can download their scorecard and print a copy for their records.
The preliminary PO exams were conducted on August 17, 23, and 24, 2025. Candidates who pass this initial test will be eligible to sit for the Mains exam, which is scheduled for October 12, 2025. The bank-wise vacancy breakdown is not fully available, as some banks, including Indian Bank, UCO Bank, and Union Bank of India, have not reported their vacancy numbers.
The IBPS PO recruitment is a significant opportunity for candidates to join major Indian banks as Probationary Officers/Management Trainees. With 5,208 vacancies available, this recruitment drive is highly competitive, and candidates who have passed the preliminary exam will need to perform well in the Mains exam to secure a position.
It is essential for candidates to keep an eye on the official IBPS website for updates on the result announcement and to follow the instructions carefully to check their results. By doing so, they can determine their qualifying status and proceed to the next stage of the recruitment process if they are successful. The IBPS PO recruitment for 2025 is a crucial step for candidates seeking a career in the banking sector, and the announcement of the preliminary exam results is a significant milestone in this process.
Karnal Farmers Stage Protest Outside UCO Bank Branch Amid Ongoing Loan Dispute
Members of the Bharatiya Kisan Union (BKU) in Karnal, Haryana, staged a protest against UCO Bank on Thursday, alleging that the bank is exploiting farmers through exorbitant loan recovery demands. The protest was sparked by the case of a farmer from Kohand village, who despite repaying more than double the principal loan amount, is still being treated as indebted and is facing threats of having his six-acre farmland seized. The farmer, Madan Pal Rawal, had inherited a loan of approximately ₹1.47 crore from his father, which he had been repaying until the COVID-19 pandemic devastated his poultry farm and left him unable to maintain regular repayments.
The bank has now raised its demand to an inflated ₹5.80 crore, far exceeding the original borrowing. The BKU has criticized the government’s double standards, pointing out that while it writes off debts owed to private moneylenders, it authorizes banks to auction off the homes and farmlands of struggling farmers. The union has announced that a 12-member delegation will meet with the Deputy Commissioner on September 16 to seek an immediate resolution to the issue.
The protest saw wide participation from BKU leaders and members, who marched through the city, carrying an effigy of the bank and raising slogans. The effigy was eventually set ablaze, symbolizing the farmers’ anger and frustration with the bank’s actions. The BKU has warned that it will intensify its agitation if necessary to prevent the auction of Madan Pal’s land.
The dispute highlights the growing tension between rural borrowers and financial institutions, particularly in the wake of the pandemic, which has left many farmers struggling with unsustainable debts. The BKU is demanding that the government take action to protect farmers from exploitation by banks and other financial institutions. The meeting with the Deputy Commissioner on September 16 is expected to be a crucial step in resolving the issue and preventing further escalation of the protest.
The farmers are arguing that the bank’s demands are unfair and that they are being forced to pay an inflated amount due to the bank’s own mistakes. They are also demanding that the government provide relief to farmers who are struggling to repay their loans due to the pandemic. The protest has brought attention to the plight of farmers in Haryana and the need for the government to take action to protect their rights and interests.